Other example for CFD setup

[hunsabre]

Hello,
I read posts, and manual, but still confused about the definition used in Amibroker.

Example I want to test OIL CFD.
Data from my broker:
Contract size: 1000 (barrel)
min volume: 0.01 (you can trade min. 0.01 lot)
digits: 2
Margin requirement for 1 lot: let say 500 USD (it is for 1 lot Contract)

I wanna test with 0.1 lot positition size.

Round Lot size: is it 1 or 0.01? "the minimum treading unit...." according to Aminbroke symbol informatiuon

Tick size: ??
Point Value:?? is it for 1 lot (10 USD) or for the lotsize (0.01 lot --> 1 USD) what I wanna trade?

Margin Deposit: ?? is it for 1 lot Contract or for the lotsize for I wanna trade?

Thank you. I sorry, but I obviusly I miss some point....

[Henri]

For educational purpose, I will post some thoughts but I do not have in depth knowledge about all you are asking so it's for my own education aswell Maybe that will also make it more clear for you what is happening and needed.

------- 1 ----------
You write:

I wanna test with 0.1 lot position size.

Your broker say's 1 lot = 0.01

That means that you should write:

I want to test with 10 lots.

------- 2 --------

Round lot size. That's something that is used for stocks. There used to be a time that you had to trade 100 stocks and always lots of 100 stocks. So you had to trade 100 or 200 or 300 etc.

That will influence your backtest dramaticaly. Sometimes you can not trade because you do not have enough money for 100 stocks for example.

I do not think round lot size is used for futures trading. Usualy in futures the lot is 1. In CFDs it's different.

Therefore, your round lot size setting will not do anything, and since you can trade 0.01 or more, you can set it to 0.01 just in case.

------- 3 -------

tick size. That is the minimum price movement your CFD can make. I see that you write "digits 2" so I would guess that is the tick size. Tick size therefore would be 0.01

----- 4 --------

Point value:

My guess would be that it would be for full points.... But I am not sure.

----- 5 --------

Margin deposit would be per contract. You want to trade 10 contracts. The backtest will all calculate that but you will have to set your value's for 1 contract.

------ the end -------

I can only imagine you know / have heard what I am going to say now.... CFD's are a very good way to go broke fast. I even have the idea they are invented to let people go broke. I would suggest that you are better off finding a different place to invest.

That's just my opinion, some free advice. Hope the other answers help you out

Greetings

[hunsabre]

Thanks your reply.

So,

My trade volume 0.1 lot (means 100 barrel).
Round Lot size=0.01, becuse this is the min. amount to trade in that instrument
Tick size=0.01, because the price is recorded with 2 decimal digit after the decimal point.
Point Value=1 USD, because 0.1 lot x 1000 barrel x Tick size
Margin requirement: 500 USD acc. to my broker for 0.1 lot of OIL.

I know CFD s are fast, high leveradged product. I just wanna trade: short term, risk sized positions, hidden stop loss. Many technical stuff not working here because the bias towards long trades are counter balanced by allowed short positions, etc. Yes it is differentr than stocks. Harder game, but more opportunity to win and lose.

Amibroker is a good testing SW, mutch more better than MT4. But MT4 has access to automate and trade many instrument, CFDs.

[Henri]

@hunsabre

My trade volume 0.1 lot (means 100 barrel).
Round Lot size=0.01, becuse this is the min. amount to trade in that instrument
Tick size=0.01, because the price is recorded with 2 decimal digit after the decimal point.
Point Value=1 USD, because 0.1 lot x 1000 barrel x Tick size
Margin requirement: 500 USD acc. to my broker for 0.1 lot of OIL.

Point Value = The value for a full point. (My guess is $100)

Margin requirement = For trading 1 contract. I think that will be $50

You have to split up your thinking. You set up the contract for 1 contract. All your settings will be for 1 contract. You will then trade 10 contracts.

You do not make your settings for 10 contracts. You make all your settings for 1 contract and then specify in your AFL code or backtest settings that you are trading 10 contracts.

Another PS: do not fix yourself to always trading 10 contracts. Depending on your trading system it might be interesting to scale in and out or take bigger positions with bigger opportunities and smaller positions with smaller opportunities.